MEMORANDUM for the FILE (Supply Contract)

MEMORANDUM FOR THE FILE (Supply Contract)

Subj: INCLUSION AND EVALUATION OF OPTION PROVISION UNDER

(Insert Solicitation Number or Acquisition Title)-

Ref: (a) FAR 17.202

(b) FAR 17.205

(d) FAR 17.204

(e) FAR 17.206

1. The proposed procurement is for (description of supplies) as required by (name and code of requester). It is anticipated a (contract type) type contract will result from this solicitation.

2. The requester has advised there is a requirement for (an additional quantity of supplies and funds are not currently available except for the base quantity). The requester has requested that an option for an additional (number) be included in the contract.

3. In accordance with references (a) and (b), it is determined to be in the best interest of the Government to include an option provision in the contract as there is a need for an additional quantity. It is anticipated a new solicitation for the option quantity would not result in a better price. It is not anticipated the contractor will incur undue risks, as the price and availability of necessary materials and labor are reasonably foreseeable.

4. In accordance with references (c) and (d), the option quantity will be a separately priced line item with no limitation on price, will specify a total quantity limit on the option and will fix the period within which the option will be exercised. The quantity option will be exercised no later than (number) days after date of contract. This is considered adequate lead-time in order to assure continuous production.

5. In accordance with reference (e), the option quantity may be considered in the evaluation for award based on the following:

(a) There is a known requirement that exceeds the basic quantity to be awarded, but due to the unavailability of funds, the option cannot be exercised at the time of award of the basic contract;

(b) The Government is likely to exercise the option; and

Date Contracting Officer

MEMORANDUM FOR THE FILE (Indefinite Delivery Supply Contract)

Subj: INCLUSION AND EVALUATION OF OPTION PROVISION UNDER

(Insert Solicitation Number or Acquisition Title)-

Ref: (a) FAR 17.202

(b) FAR 17.205

(d) FAR 17.204

(e) FAR 17.206

1. The proposed procurement is for (description of supplies) as required by (name and code of requester). It is anticipated a (contract type) type contract will result from this solicitation.

2. The requester has advised there is a recurring need for this material beyond the estimated base year quantity and has requested that estimated quantities for (number) one (1) year option(s) be included in the contract.

3. In accordance with references (a) and (b), it is determined to be in the best interest of the Government to include option period(s) in the contract, as there is a continuing need for additional material. It is anticipated a new solicitation for the option periods would not result in a better price. It is not anticipated the contractor will incur undue risks, as the price and availability of necessary materials and labor are reasonably foreseeable.

4. In accordance with references (c) and (d), the option period(s) will be a separately priced line item(s) with no limitation on price, will specify an overall duration of the contract and will fix the period within which the option will be exercised. Preliminary notice will be given to the contractor 60 days prior to expiration of the contract and final notice 30 days prior to expiration of the contract. This consideration is adequate lead-time in order to assure continuous production and supply of the material.

5. In accordance with reference (e), the option year quantities may be considered in the evaluation for award based on the following:

(a) There is a known requirement that exceeds the basic quantity to be awarded, but due to the unavailability of funds, the option(s) cannot be exercised at the time of award of the basic contract;

(b) The Government is likely to exercise the option; and

Date Contracting Officer

MEMORANDUM FOR THE FILE (Service Contract)

Subj: INCLUSION AND EVALUATION OF OPTION PROVISION UNDER

(Insert Solicitation Number or Acquisition Title)-

Ref: (a) FAR 17.202

(b) FAR 17.205

(d) FAR 17.204

(e) FAR 17.206

1. The proposed procurement is for (description of services) as required by (name and code of requester) . It is anticipated a (contract type) type contract will result from this solicitation.

2. The requester has advised there is a recurring need for these services beyond the base year and has requested that (number) one (1) year option(s) be included in the contract. Additionally, the Contracting Officer may need an additional option provision for extension of services for a period of time not to exceed six months in case award of the subsequent procurement is delayed.

3. In accordance with references (a) and (b), it is determined to be in the best interest of the Government to include option period(s) for continuing performance because the Government has a need for continuity of operation and there is a high potential cost of disrupted support. It is anticipated a new solicitation for the option period(s) would not result in a better price. It is not anticipated the contractor will incur undue risks, as the price and availability of necessary materials and labor are reasonably foreseeable.

4. In accordance with references (c) and (d), the option period(s) will be a separately priced line item(s) with no limitation on price, will specify an overall duration of the contract including option(s) and will fix the period within which the option will be exercised. Preliminary notice will be given to the contractor 60 days prior to expiration of the contract and final notice 30 days prior to expiration of the contract. This is considered adequate lead-time in order to assure continuous performance. Notwithstanding the notice of intent, the Government is not obligated to exercise the option if funding is not authorized.

5. In accordance with reference (e), the option quantity may be considered in the evaluation for award based on the following:

(a) There is a known requirement that exceeds the basic quantity to be awarded, but due to the unavailability of funds, the option(s) cannot be exercised at the time of award of the basic contract;

(b) The Government is likely to exercise the option(s); and

Date Contracting Officer

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